1. Confusion about the legality of cryptocurrency speculation
The 924 document shows that although cryptocurrency trading is prohibited, it has not yet been defined as illegal. There have been cryptocurrency trading accounts that have been frozen, and the police were refuted when arguing with them. The current policy is cracking down on cryptocurrency trading. If a bank detects cryptocurrency trading, it may require the account to be closed. However, there is currently no law that clearly states that cryptocurrency trading is illegal.
2. The source of profits and assets from cryptocurrency trading is unknown
If the income from cryptocurrency speculation is legal, there is no need to worry about the accusation of unknown source of property. my country's laws do not consider cryptocurrency speculation illegal, and past documents only remind people to bear the risks at their own risk. Those cases of "being caught for cryptocurrency speculation" are mostly due to illegal sales of USDT and involving black money transactions.
Three, Reasons for the State's Crackdown on Cryptocurrency Trading
Regulating cryptocurrency trading is fraught with difficulties, as transactions are covert, making tracking challenging, and easily providing a channel for the black and grey industries. Nowadays, fraudsters often utilize USDT for cross-border transactions, posing great challenges for police tracking.
Four, Handling Receiving Dirty Money from Selling USDT
If selling USDT involves receiving dirty money, there is a high probability that compensation will be required. Since trading virtual currency involves dirty money, it may be considered a crime, and those who cash out from trading may become suspects. After selling currency, accounts may be frozen and often require compensation for unfreezing.
Five, Nature Determination of Selling USDT at High Prices
Retail investors selling USDT at high prices are not considered illegal operations, but the money received may be dirty money, requiring consideration of the reasons behind the high-priced acquisition. Illegal operations mainly target exchange traders.
Six, Qualitative Analysis of Multiple Account Freezes
Having multiple cards frozen multiple times will be deemed as knowing wrongdoing by the police.
Seven, Compliance of Selling USDT on Exchanges
Selling USDT on exchanges is not illegal, but it can easily lead to receiving dirty money, which may result in account freezes. Exchange traders can be divided into two categories: one launder money, and the other makes a profit from price differences. Encountering the former will inevitably lead to account freezes, while encountering the latter is largely a matter of luck and may also involve second-hand dirty money.
Eight, Whether Exchange Traders are Illegal or Not
Exchange traders may be illegal but have some operational leeway. In some regions, police may lack understanding of the industry; if traders can provide proof of trading and not renting out bank cards and are willing to compensate, there may be a possibility of unfreezing. However, traders who have been frozen multiple times or are involved in major cases may face charges of illegal operations or illegal currency exchange.
Nine, Risks of Selling USDT at High Prices Off-Exchange
Selling USDT at high prices off-exchange without receiving dirty money is not illegal; however, receiving dirty money is illegal and may lead to actual imprisonment. Selling USDT at high prices while using encrypted chat software can easily lead the police to assume knowing wrongdoing, and compensation cannot be avoided, with the possibility of detention for 37 days.
Our country has established compliant virtual currency exchanges in Hong Kong, such as the Ouyi Exchange. Other exchanges must also cooperate with the police in investigations, as cryptocurrencies are not a lawless realm, and those involved will be pursued.
Ten, Current Status of Compliant Domestic Virtual Currency Exchanges
Eleven, Review of Cash Deposits in Millions
Banks will review cash deposits in millions. Nowadays, fund handling is digitalized, and except for official allocations like demolition funds or lottery winnings, large cash deposits need to explain their source or provide tax payment proof. Accounts with little original funds but suddenly deposit millions will face stricter scrutiny, and banks will report business to the anti-money laundering system and connect with multiple departments.
Twelve, Review Situation of Accounts with Million Deposits
It depends on the situation. If a risky account transfers funds and involves fraud, money laundering, or other illegal activities, the bank will inevitably implement risk control on the account, requiring an explanation of the source of funds; otherwise, it may intersect with the anti-fraud center. Abnormal account behavior, such as dispersing funds shortly after receiving payments or concentrating multiple sources of funds for transfer, will also trigger risk control; legitimate fund transfers generally do not face issues.
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